Compass (CPG) AI Stock Analysis

• Market Cap: £44.75B
• Dividend Yield: 2.12%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 0.49
• Revenue Growth: 7.67%
• EPS Growth: -15.09%
• Country: UK
• Employees: 580,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.48
• Shares Outstanding: 1,697,430,200
• 10 Day Avg. Volume: 2,312,330
• 30 Day Avg. Volume: 2,736,327
• PEG Ratio: 3.11
• Price to Book (P/B): 5.98
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 18.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,002.14
• Price Target Upside: 13.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: 2,842.00p ▲(7.77% Upside)

Compass's strong financial performance is the most significant factor, highlighting robust growth and efficient cash flow management. Technical analysis indicates a neutral stance with no strong momentum, while the valuation suggests the stock is relatively expensive. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Compass's products and effective market penetration, supporting long-term expansion.

Cash Flow Management

Effective cash flow management enhances financial flexibility, enabling Compass to invest in growth opportunities and weather economic fluctuations.

Operational Efficiency

High operational efficiency, reflected in strong profit margins, ensures Compass can sustain profitability and competitive positioning over time.

Negative Factors

Equity Proportion

A relatively low equity proportion may limit financial stability and flexibility, potentially impacting Compass's ability to fund future growth.

Earnings Decline

A decline in earnings per share suggests challenges in maintaining profitability, which could affect investor confidence and long-term growth prospects.

Debt Levels

While leverage is manageable, maintaining control over debt levels is crucial to prevent financial strain and ensure long-term sustainability.

Compass Business Overview & Revenue Model

Company Description

Compass (CPG) is a leading consumer packaged goods company specializing in the development, manufacturing, and distribution of a diverse range of products within the food and beverage sector. With a commitment to quality and innovation, Compass offers a portfolio that includes snacks, beverages, and health-conscious alternatives, catering to a wide array of consumer preferences. The company operates in multiple markets, leveraging its extensive supply chain and distribution networks to reach consumers effectively.

How the Company Makes Money

Compass generates revenue primarily through the sale of its consumer packaged goods across various retail channels, including supermarkets, convenience stores, and e-commerce platforms. Key revenue streams include direct sales of its branded products, private label partnerships, and distribution agreements with major retailers. Additionally, the company may benefit from strategic alliances with other firms for co-branding initiatives or joint marketing campaigns, which can enhance brand visibility and drive sales. The focus on innovation and responding to consumer trends also positions Compass to capture market share and increase profitability.

Compass Financial Statement Overview

Summary

Compass exhibits strong financial health with impressive revenue and profit growth, efficient cash flow management, and a stable balance sheet. The company shows robust operational efficiency and profitability, although maintaining control over debt levels and enhancing equity proportion could further strengthen its financial position.

Income Statement

Compass has shown impressive revenue growth from 2023 to 2024, with a 35.36% increase. The company maintains a healthy gross profit margin of 33.15% and a solid net profit margin of 3.34%. The EBIT and EBITDA margins of 6.05% and 8.12%, respectively, indicate strong operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

Compass's balance sheet is stable with a debt-to-equity ratio of 0.87, indicating manageable leverage. The return on equity is 20.56%, showcasing efficient utilization of equity capital. An equity ratio of 28.05% suggests a balanced capital structure. While the company maintains a healthy position, slight improvements in equity proportion could enhance stability.

Cash Flow

The company demonstrates strong cash flow management, with a significant operating cash flow to net income ratio of 2.23. Free cash flow has grown by 22.18% from 2023 to 2024, supporting the company's operational and growth activities. The free cash flow to net income ratio of 1.59 further emphasizes positive cash flow generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.03B	42.00B	31.03B	25.51B	17.91B	19.94B
Gross Profit	13.79B	13.93B	1.95B	1.48B	962.00M	3.76B
EBITDA	2.74B	2.76B	2.74B	2.35B	1.28B	915.00M
Net Income	1.14B	1.40B	1.31B	1.24B	357.00M	133.00M
Balance Sheet
Total Assets	19.50B	24.35B	21.48B	18.75B	14.87B	14.73B
Cash, Cash Equivalents and Short-Term Investments	505.47M	623.00M	1.03B	1.99B	1.84B	1.48B
Total Debt	5.51B	5.91B	5.27B	4.88B	4.48B	4.72B
Total Liabilities	14.04B	17.44B	15.18B	12.84B	9.95B	9.92B
Stockholders Equity	5.39B	6.83B	6.26B	5.87B	4.89B	4.79B
Cash Flow
Free Cash Flow	2.05B	2.23B	1.83B	1.31B	943.00M	205.00M
Operating Cash Flow	2.47B	3.13B	2.17B	1.60B	1.17B	914.00M
Investing Cash Flow	-1.65B	-1.26B	-1.23B	-874.00M	-727.00M	-1.10B
Financing Cash Flow	-997.82M	-1.53B	-2.09B	-693.00M	-152.00M	1.28B

Compass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2637.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPG, the sentiment is Positive. The current price of 2637 is above the 20-day moving average (MA) of 2548.05, above the 50-day MA of 2547.18, and above the 200-day MA of 2585.20, indicating a bullish trend. The MACD of 17.16 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CPG.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	74 Outperform	£1.52B	9.09	6.90%	―	1.95%	275.56%
CPG	73 Outperform	£44.75B	39.02	21.77%	2.12%	7.67%	-15.09%
MARS	73 Outperform	£305.10M	6.90	10.69%	―	0.50%	―
SSPG	64 Neutral	£1.30B	-55.31	-13.13%	2.28%	11.49%	-406.25%
JDW	64 Neutral	£701.80M	10.97	17.81%	1.67%	4.52%	50.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOM	59 Neutral	£751.39M	9.92	―	5.64%	-0.67%	2.43%

Compass Corporate Events

Compass Group PLC Announces Total Voting Rights and Capital Update

Compass Group PLC has announced its total voting rights and capital as of 30 September 2025, with 1,785,403,977 ordinary shares issued, of which 1,697,430,179 are admitted to trading and 87,973,798 are held in treasury. The total number of voting rights for the shares admitted to trading is 1,697,430,179, and the voting rights of treasury shares are suspended. This announcement provides shareholders with the necessary information to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £31.55 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Announces Board and Committee Changes

Compass Group PLC, a leading company in the foodservice and support services industry, has announced changes to its Board and Committee memberships. Non-executive director Stefan Bomhard will retire after nine years of service and will not seek re-election at the upcoming Annual General Meeting in February 2026. The company has confirmed that there will be no changes to the existing Committee Chairs, and the new committee memberships will take effect from October 1, 2025.

The most recent analyst rating on (GB:CPG) stock is a Hold with a £2744.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Announces Board Appointment of Stefan Bomhard

Compass Group PLC has announced the appointment of Stefan Bomhard to the Board of Flutter Entertainment plc as a Non-executive Director, effective from October 1, 2025. This strategic move is expected to enhance Compass Group’s governance and strengthen its industry connections, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £29.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group PLC Announces Total Voting Rights and Capital Update

Compass Group PLC has announced its total voting rights and capital as of 31 August 2025, with an issued share capital consisting of 1,785,403,977 ordinary shares. Of these, 1,697,430,179 shares are admitted to trading, while 87,973,798 shares are held in treasury with suspended voting rights. The company also sponsors a level 1 American Depositary Receipt Programme, allowing its shares to be traded on the New York Stock Exchange. This announcement provides shareholders with the necessary information to calculate their interests under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2807.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.